Mortgage Rates plunged to lows not seen since early 2015. Currently a conventional conforming 30 year Fixed Rate Mortgage is at 3.375% with an APR of 3.435%. This is a very volitile market with several intraday changes. Its time to think fast and move faster, as this may be short lived. Call me at 914-764-3261 to see if it makes sense for you to refinance.
Yellen Tells Banks to prepare for the possibility of negative treasury rates.
Negative interest rates in the U.S. may seem like a far-fetched idea, but the Federal Reserve is telling banks to prepare, just in case.
For the first time ever, the governing agency and U.S. central bank is requiring banks to include, in a round of stress tests commencing this year, to prepare for the possibility of negatively yielding Treasury rates. The scenario is purely hypothetical and not a forecast, according to a Jan. 28 Fed news release .
However, the development is part of a larger scenario of a world where zero rates are morphing into negative rates. read more
Mortgage Rates
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| Rates Currently Trending: Lower
Rates are trending unchanged this morning. The MBS market improve by + 31 bps yesterday. This was enough to improve mortgage rates or fees. The market experienced high volatility yesterday. Mortgage rates continue to trend lower in the medium term down as much as .50 % in rate since the beginning of the year.
Today’s Rate Forecast: Lower
Foreign: Sweden’s central bank (Riksbank) surprised markets this morning by going even more negative as they lowered their repo rate down from -0.35% to -0.50%. And that started the avalanche. The results? Gold hit a new 1 year high, European Stocks went into the toilet, our own 10Y Treasury went below 1.6% and MBS hit their highest levels in the last 12 months (lower rates). OIL: “tanked” down to $26.22 in early trading. It has since rebounded to $27.33 but still a levels well below $28 which is very helpful to mortgage rates. Jobs: Initial Weekly Claims broke the recent trend of 280K+ and came in much lower than expectations with a reading of 269K. The more closely watched 4 week moving average dropped from 284.75K down to 281.25K. This continues the string of stable/good labor news.
Today’s Potential Rate Volatility: High
Expect high volatility with Janet Yellen speaking in front of congress along with the recent dramatic decline in mortgage rates.
Bottom Line:If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact your mortgage professional to discuss it with them.
John Sauro
North Atlantic Mortgage
Email: johnsauro@gmail.com
Ph: 914-764 3261
Website:https://www.northatlanticmortgage.com
*Rate of 3.375% with a 3.435% APR and is based on a conventional 30 year fixed rate mortgage with a $417,000 loan amount with a cost of .72 points and a 60 percent loan to value for a purchase or rate and term refinance,. The rate is locked for 30 days.
Source: CNBC, Bloomberg, TBWS
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